KARACHI, Sept 20: Trading volume on the Karachi Stock Exchange on Monday fell sharply lower as investors played on both sides of the market apparently awaiting the outcome of next meeting between the prime minister and the delegation of bourses on the Capital Value Tax and other related matter later this week.

However, fresh decline was averted as leading shares came in for stray covering purchases at the lower levels under the lead of PPL, OGDC and PTCL but the near-term direction of the market is still unclear.

Dividend announcements by Clover Pakistan, DG Khan Cement and Dawood Investment Bank were on the higher side of the market expectations and played a stabilizing role on their respective sectors.

After moving either-way with a range of 10 points, the KSE 100-share index was finally fractionally down by 1.14 points at 5,044.77 as compared to 5,045.91 at the weekend.

In the backdrop of about 400 points or 7 per cent decline for the last about two months on CVT-related selling, the latest status quo reflects that it could move either-way depending on news from Islamabad on CVT and other issues.

Bulls and bears just maintained a status quo aided by reports that a team of bourses will again meet the prime minister later this week in Islamabad on the issue of Capital Value Tax (CVT) and some other problems being faced by the investors, analysts said

"Prime minister's last Friday's plain no to the KSE delegation over the CVT, terming it a settled issue shows that he may not be obliging bourses chief in his this week's meeting," they said adding "he will certainly match the daily trading losses by giving relief on some other counts."

"I don't think the prime minister will be happy on the prevailing conditions on the bourses during the post-CVT period, he would like to see a robust market as it has been in the pre-CVT period," some others hope.

They said investors would play on both sides of the fence or play safe until the outcome of next meeting with the prime minister is known and that could well mean further pruning on the overvalued counters.

Strong selective support emerged on a number of counters as most of the leading base shares finished partially recovered under the lead of Pakistan Petroleum. It came in for extended support and took the entire blue chip counter also with it, although bears did not oblige.

Prominent gainers were led by Clariant Pakistan, Exide Pakistan, Berger Paints, Pakistan Services, Unilever Pakistan, which posted gains ranging from Rs5 to Rs10.

But the largest gains were noted in Millat Tractors, Jahangir Siddiqui Investment Bank, Arif Habib Securities, and Ferozsons Lab up by Rs10 to Rs15.20. Leading losers included Murree Brewery, Shezan International, Treet Corporation, Colgate Pakistan, Shell Pakistan, International Industries and Al-Ghazi Tractors, off Rs5 to Rs8.

Trading volume fell sharply to 112m shares from the previous 212m shares as euphoria associated with KSE team's meeting with the prime minister on last Friday faded under the weight of falling demand.

Advancing shares, however, cut short the strong lead held by the losing ones at 140 to 155, with 41 shares holding on to the last levels. OGDC was actively traded, up 10 paisa at Rs59.90 after persistent decline over the last two weeks on 15m shares followed by Pakistan Petroleum, higher by Rs1.25 at Rs114.05 on 14m shares, PTCL, up 25 paisa at Rs39.40 on 13m shares, Sui Northern Gas, firm by 85 paisa at Rs56.35 on 11m shares and Bank of Punjab, up 35 paisa at Rs65.20 on 11m shares.

Other actives included Hub-Power, off 80 paisa at Rs31.25 on 11m shares DG Khan Cement, unchanged on 5m shares, Haseeb Waqas Sugar, higher by Rs1.35 also on 5m shares, Askari Bank, up 25 paisa on 4m shares, and National Bank, off 35 paisa also on 4m shares.

FORWARD COUNTER: Pakistan Petroleum, October settlement came in for active support and rose by Rs2.70 at Rs113 on 6.589m shares followed by OGDC, September delivery, firm by 10 paisa at Rs60 on 5m shares, PTCL, higher by 45 paisa at Rs39.45 on 2m shares, Sui Northern Gas, up 70 paisa at Rs56.25 also on 2m shares and Hub-Power, off 55 paisa at Rs31.35 on 2m shares.